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Portuguese Government Plans to Deliver 2,000 New Beds for University Students by 2021
8 October 2018
According to the Ministry of Science, Technology and Higher Education, the supply of beds for out-of-area university students is currently too low to meet existing demand.
On Monday, the Portuguese government announced that it would rehabilitate 12 properties under the auspices of its National Housing Plan for Higher Education (PNAES). The estimated investment of 15 million euros will result in 2,000 new beds for university students by 2021.
The properties that the government intends to rehabilitate are located in Aveiro, Coimbra, Covilhã, Évora, Guarda, Leiria, Lisbon, Portalegre, Porto, Vila Real and Viseu, the office of the Secretary of State for Science, Technology and Higher Education said in a statement. The government will pursue the interventions through agreements between institutions of higher education and Fundiestamo, a state-owned entity in charge of the National Fund for the Rehabilitation of Buildings (FNRE).
“The first agreements will be signed shortly,” said the Ministry of Science, Technology and Higher Education, revealing that the rehabilitation of the 12 properties is estimated to result in a total of 2,000 new beds (700 in 2019, 900 in 2020 and 400 in 2021). The estimated investment of 15 million euros will be headed by Fundiestamo through the formation of sub-funds.”
The renovations will be undertaken within a “joint operation” by the Secretary of State for Science, Technology and Higher Education and Secretary of State for Housing, aiming to prioritise the “rehabilitation of existing buildings, without compromising the financial sustainability of institutions of higher education, taking advantage of the local heritage and seeking positive impacts in terms of social and territorial cohesion, based on the needs of students in public higher education institutions and respecting their distribution throughout the national territory.”
“At the same time, in a partnership with the General Directorate of the Treasury and Finance and various governmental sectors, such as Education, a process to identify state-owned real estate is underway for possible inclusion in the PNAES for use through the FNRE, or through a cession or management agreement to institutions of higher education and municipalities,” the Office of the Secretary of State for Science, Technology and Higher Education stated.
According to a review conducted by the Ministry of Science, Technology and Higher Education, the supply of beds for out-of-area university students is currently too low to meet existing demand, though not all non-resident students need housing. The report noted that there are ” 42.3% of students in public higher education are out-of-area (113,813 students) “and” 13% of beds for non-resident public higher education students (15,370 beds).”
As a part of the rehabilitation of the 12 properties already included in the program, “dozens of meetings and technical visits between higher education institutions and Fundestamo have taken place, including with other entities, mainly municipalities and other public bodies, with the goal of using the FNRE to convert public properties into student residences.”
FNRE is a special real estate investment fund managed by Fundiestamo – which a part of Parpública, a group of companies under the supervision of the Ministry of Finance – and regulated by the Securities Market Commission (CMVM) and the Bank of Portugal.
As a first step, the FNRE aims to rehabilitate properties owned by the state, local governments, public institutions of higher education and other public entities and the third sector. The renovations will be financed through the Social Security Financial Stabilisation Fund (FEFSS), with an estimated return of at least 4% per annum.
The entities participating in the FNRE will temporarily cede their properties and receive, in return, units in the respective sub-funds, which will, in turn, generate an annual income. Thus, the properties themselves will not be sold, and the owners may hold onto the majority ownership of the sub-funds that comprise them. Each sub-fund will have a normal duration of ten years.
In a statement, the Office of the Secretary of State for Science, Technology and Higher Education also referred to the Government’s proposed legislation to create the Affordable Rental Program, a part of the New Generation of Housing Policies, which aims to increase access to student housing, among others.
Original Story: Jornal Econômico / Lusa
Translation: Richard Turner